Fiscal Impact of Development on Council Agenda Monday
February 28, 2009 by Stan Fendley, Falls Church City · 1 Comment
The Falls Church City Council will look at the fiscal impact of recent real estate development as its first work session item Monday, March 2. The Council will then also discuss federal stimulus legislation, followed by a closed session to discuss the City’s lawsuit with Fairfax County Water Authority.
The work session starts at 7:30 p.m. in the Training Room (Level G), City Hall.
AGENDA:
1. Development Update and Fiscal Impact Analysis of Completed Projects
2. Federal Stimulus/State Legislation Update
3. Closed session pursuant to Section 2.2-3711 (A)(7) of the Code of Virginia for “[c]onsultation with legal counsel and briefings by staff members or consultants pertaining to actual or probable litigation, where such consultation or briefing in open meeting would adversely affect the negotiating or litigation posture of the public body; and consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel. (Fairfax County Water Authority v. City of Falls Church)
4. Council Comments and Schedule
Status of the City Center Development
February 27, 2009 by A.C. Miller · 1 Comment
I’ve been asked by a number of friends over the past few weeks, “What is the status of the City Center development in Falls Church?” The simple answer is that it seems to be on hold at least until the country starts to climb out of the recession. The credit markets are still “frozen.” Retail establishments, including hotels, are not committing to new leases, anywhere, as far as I can tell.
Atlantic Realty, the developer of the project, was given 3 years to break ground under its contract with the City. So they have two years still to go. They have a lot invested in this. I don’t think they want to scrap it. But they need financing, and in order to get financing they will probably need pretty solid lease commitments from major tenants. And then there is site plan approval, and the need to complete all their land consolidation, including Bowl America, which is under option, but that option will likely have to be extended. In short, it’s not easy.
I was also asked about the City’s contribution of City-owned property to the project. There is no danger that the City will forfeit its property. If the project does not go forward, the transfer of City-owned property does not go forward.
I know some people would rather the project not go through. I have my criticisms too, but perfect being the enemy of the good, I think it is the best Falls Church could get right now, even if the economy had not tanked, and it would be a good start to developing more of the downtown.
I hope this clarifies the situation, at least somewhat. I would certainly welcome more facts and feedback from all involved in the process. I’m looking forward to more discussions about developing our downtown. By the way, a good resource for those who are interested in the city’s development activities is the website of the Economic Development Authority. There you will see a fairly comprehensive explanation of its activities, studies, programs and services.
[Full disclosure: I served on the Board of EDA from 2001 to January 2009.]
City Council Approves Pearson Square Waiver
February 24, 2009 by George Bromley · 3 Comments
Last night the Falls Church City Council unanimously approved a request from the owners of Pearson Square to broaden the types of retail establishments permitted at the site on South Maple Avenue. The decision was not unexpected as it had been earlier endorsed by the Planning Commission and recommended by the Economic Development Authority.
Pearson Square was developed by Atlantic Realty but now is owned by Transwestern, a nationwide firm with extensive holdings in the DC metropolitan area. Robert Ruffatto, the company’s chief spokesman, described Falls Church as a very desirable location. He stated that the occupancy rate for the building’s residential units will soon reach 90%. However, attracting retail clients has been difficult. The firm thus far has made 173 contacts without success.
The only tenant for the immediate future will be the arts organization currently referred to as Creative Cauldron, but which most likely will be renamed The Arts Place of Falls Church. They are expected to occupy space in the building in June.
After extensive discussion, the Council approved the requested waiver, the text of which reads as follows with revisions to the original document italicized:
The retail space of the first floor of the residential building at 410 S. Maple Avenue (Pearson Square) may include up to 8,000 square feet for retail service uses and/or businesses, professional, medical and/or dental office uses, with the limitation that of this subject 8,000 square feet no more than 2,400 square feet may be for business or professional office use, and no more than an additional 2,400 square feet may be for medical or dental office use. All retail service uses and/or business, professional, medical and or dental office uses shall be limited to lease terms of no more than ten years. Flex-art space as described in the voluntary concessions of Resolution 2008-17 shall not be limited in lease term.
Full text of resolution, revision not included:
http://www.fallschurchva.gov/Content/Government/Council/Meetings/2009/Feb23/PearsonSqSE022309.pdf
Transwestern’s website:
Grudge Rematch: Falls Church City All-Stars take on Harlem MagicMasters
February 22, 2009 by Dave Witzel · Leave a Comment
The City of Falls Church & the Tinner Hill Heritage Foundation Present the 3rd Annual Black History Celebration and Celebrity Basketball Game on Friday, February 27 at 7pm at the Community Center. Read more
Pearson Square Request to Broaden Retail Targets on City Council Agenda Monday
February 21, 2009 by Stan Fendley, Falls Church City · 2 Comments
The Falls Church City Council will consider on Monday the request by Pearson Square Apartments to broaden the types of retail establishments it may add. (For background, see, “Pearson Square Owners Lament ‘Less-Desirable’ Location.”)
Documents pertaining to the request are now available from the City Council. The documents demonstrate an extensive list of restaurants and other business establishments Pearson Square has attempted to attract.
The city’s retail consultant supports broadening the targets, stating in a memo to city officials, “Examples of ‘elegant’ dry cleaners, nail salons, hair salons, tailors and day spas are plentiful throughout Metro DC. These retailers should be targeted by Pearson Square’s marketing efforts.”
Last week the Falls Church Planning Commission unanimously agreed that allowing some medical and dental space would be acceptable use of the space. Pearson Square was originally approved by the City Council as a condominium project, but slow sales persuaded the Council to allow its conversion to apartments. Pearson Square is located at 400-412 S. Maple Street.
Monday’s City Council session starts at 7:30pm at City Hall.
[where: 400-412 S. Maple Street, Falls Church, VA]
Keeping the Calendar Current
February 21, 2009 by Dave Witzel · 3 Comments
I’m making a renewed effort to maintain the Falls Church Times Falls Church City Calendar and would appreciate your help.
If you know of an event that might be of interest to the community, let me know and I’ll add it to the calendar.
If you help organize events regularly, and would like to add your events directly to the calendar, let me know that as well – we’ll set it up.
Feel free to reuse this calendar on your web pages or blogs. Use this URL to link to it or get HTML code to embed the calendar on a page (like I’ve done below).
Here’s what we’ve got coming up so far.
Upcoming events on the Falls Church Times calendar
Pearson Square Owners Lament “Less-Desirable Location”
February 18, 2009 by George Southern · 13 Comments
In a surprisingly frank assessment of the prospects for retail development at Pearson Square, the new owners state that
Pearson Square is a less desirable location due to limited street parking, lack of drive-by traffic, and few nearby office tenants to support retailers.
In a document apparently designed to convince the City to further ease the special exception zoning change from commercial to mixed-use, the owners state
What We’ve Learned
Retailers want to locate in high traffic areas with easily accessible parking, as well as other retailers that drive business and traffic (i.e. retailers prefer grocery-anchored shopping centers that draw significant numbers of customers). Pearson Square cannot provide this.
Specifically, its owners say, Pearson Square suffers from the following “Weaknesses”:
• Poor visibility
• Secondary retail location
• Limited on-street parking
• Limited drive-and walk-by traffic
• Limited access to George Bus
• Lack of nearby retail, housing and offices to drive local business
• The downturn in the economy and contraction of consumer spending
Background: Pearson Square is the name of the new apartment complex on Maple Avenue off South Washington Street. It was developed, along with the adjoining Tax Analysts office building, by Atlantic Realty, who also is developing the City Center South complex. The land previously contained a decrepit duckpin bowling alley, a large parking lot, and some warehouses. The property was the largest single commercial tract in the City available for development.
Although the property was not zoned for residential use, in 2003 the City made a deal with Atlantic Reality: They could build 230 condominiums on the site so long as the ground floor was reserved for retail stores, and provided they also constructed an office building. Subsidized space for “community arts” and 15 subsidized condos for “affordable housing” were thrown in to sweeten the deal. This would be the largest conversion to “mixed use” yet made by the City.
But by the time the project was nearly complete in 2007 the condo market had gone bust, and Atlantic Reality petitioned the City to change the terms of the deal. Instead of condos, the development would become rental apartments which, it was later discovered, would generate far less tax revenue for the City. That’s because condominiums are assessed on their value, just like a single family home, whereas apartments pay only a percentage of the income derived from the rent. The City had been banking on receiving $875,000 a year in condo property tax, but with the downgrade to rental apartments only about $495,000 a year could be expected.
In December 2007, Transwestern Multifamily Partners, a private equity firm, bought Pearson Square for $103 million with the intent of selling it off after 7-10 years when the condo market recovered. According to a Transwestern PowerPoint presentation prepared for the City, Pearson Square apartments are 80 percent occupied, with a 90 percent occupancy rate expected by May. But every bit of the 19,000 square feet of retail space remains vacant.
Of that retail space, 3,000 square feet will be occupied by a non-profit arts organization known as Creative Cauldron, planned to open this spring or summer. This subsidized undertaking is to provide educational workshops in the performing and visual arts for children and adults.
Transwestern states that despite contacting 173 potential retailers during the past year, no one has signed a contract. The list of firms approached includes full service restaurants, fast food joints, coffee shops, wine and cheese shops, “high-end salons and spa operators,” coffee retailers, and general retailers.
Transwestern now seeks further changes in the City’s special exception zoning to allow retail services and professional offices. This would open up the commercial space to such endeavors as doctors,’ dentists,’ and lawyers’ offices, learning centers, beauty salons, barber shops, day spas, and dry cleaners.
Transwestern’s proposal contrasts strikingly with City Council’s 2003 special exception which envisioned
a vibrant, pedestrian-oriented environment . . . with street level activity throughout the day and evening,” featuring “entertainment, art, recreation, dining, retail, and an array of consumable goods.
Some observers may ask how a dentist’s or lawyer’s office or even a learning center creates a “vibrant” community, “day and evening.” And indeed, Pearson Square seems to be moving farther and farther afield from Atlantic Realty’s 2005 groundbreaking press release, which stated, “Mayor Gardner has described the project as a ‘win-win situation’ for the city, which anticipates $1 million annually in new tax revenue from the project.”
On February 23, City Council will vote whether to further amend the special exception to allow retail service establishments. There is a precedent: In the case of the adjoining Tax Analysts building, also known as 500 South Maple, the City has allowed half of the ground-floor retail space to be used for retail services. And in fact, the only business to open so far is a dentist’s office. A pizza parlor is planned.
“Naysayers” are quick to point out that the original commercial tract of land was large enough to overcome many of the commercial “weaknesses” that Transwestern now complains of. For example, the site could have contained a shopping center anchored by a grocery store and plenty of parking. Such a concept, however, could not have included 230 residential apartments.
To read the Transwestern presentation (.pdf format), click here.
Falls Church Library Achieves Star Status
February 18, 2009 by George Bromley · 1 Comment
A happy crowd at Mary Riley Styles Public Library
The Library Journal has rated the Mary Riley Styles Public Library as one of the best in the nation.
The magazine assigns libraries star ratings similar to those used in Michelin guides. Falls Church’s library recently received a 3-star rating, which was surpassed by only one other library in Virginia.
The Journal’s Index of Public Library Service rates over 7,000 libraries. Only 256 have received star ratings, which range from 3 to 5.
Williamsburg’s library received a 5-star rating. However, that library’s operating budget is considerably larger than Falls Church’s. Libraries in Leesburg and in Loudon County received 3-star ratings.
Within its expenditure category ($1 million to $4,999,999), the library achieved exceptionally high use-per-capita rankings in the following areas:
14th – Circulation
22nd – Visits
21st – Program Attendance
16th – Internet Terminal Usage
On Tuesday evening the Falls Church Planning Commission unanimously recommended that $2 million be allocated for library expansion.
For more on the library’s need for funding, see our January 24 story on “The Stacks Are Packed”.
